UK ECCC against introduction of a Carbon Price Floor, but calls for set aside

On 26 January 2012, the UK Energy and Climate change Committee published a report entitled “UK ECCC - EU ETS” in which it expresses its opposition to the introduction of a Carbon Price Floor in the UK arguing the risk of carbon leakage within the EU. In addition, the UK ECCC calls on the UK Government to advocate the following three main changes to the EU’s Emission Trading Scheme (ETS) prior to Phase III:

• Toughening of the overall EU ETS cap to deliver a 30% emissions reduction target by 2020
• Adjustment of the annual reduction rate (EU ETS cap) to establish a long-term emissions trajectory, delivering a 60-80% reduction in greenhouse gas emissions by 2050
• The setting aside of EU Allowances

More information: UK ECCC - EU ETS